Construction input prices increased 1.9% in June compared to the previous month, according to an Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics’ Producer Price Index data released today. Nonresidential construction input prices increased 1.8% for the month.
Construction input prices are up 20.1% from a year ago, while nonresidential construction input prices are 20.3% higher. On a monthly basis, input prices were down in four of 11 subcategories in June, with the largest decline registered in the softwood lumber category (-24.8%). All three energy subcategories experienced price increases, with natural gas prices rising 24.3% for the month.
“It’s no secret that contractors and their customers have been walloped by massive increases in construction materials prices,” said ABC Chief Economist Anirban Basu. “That inflation continued through June, as reflected in the decline in profit margin expectations seen in the most recent reading of ABC’s Construction Confidence Index. But more recently, key commodity prices have declined, so it may be possible we have achieved peak inflation.
“Indeed, with much of the world at risk of recession, there is likely to be further downward pressure on commodity prices going forward,” said Basu. “Oil prices had been in the range of $120/barrel recently. As of this morning, the price of oil has dipped into the low $90s. Similarly, natural gas prices have been in decline. In part, this may be because global supply chains are readjusting to disruptions caused by the Russia-Ukraine war. The war creates an ongoing risk of sudden spikes in certain commodity prices, but we appear to be entering a new phase in input price trajectory.”
Related Stories
| Sep 11, 2012
About 170 events planned nationwide for fourth annual SteelDay September 28
SteelDay is a national event featuring free educational and networking opportunities for the design and construction community and the public.
| Sep 11, 2012
New York City releases first energy benchmarking data for private buildings
City is first in U.S. to disclose private-sector building energy data from a mandatory benchmarking policy.
| Sep 7, 2012
Net-zero energy pioneers on the el-hi frontier
Getting to net-zero is not easy, but the promise of eliminating energy bills and using state-of-the-art technology as a learning lab can make a compelling case to reach for net-zero.
| Sep 7, 2012
The keys to success in the K-12 school market
When educators and school administrators describe their vision for new K-12 school buildings as ‘21st-century learning spaces,’ they’re not exaggerating. Many new schools are truly different in concept from their counterparts of only a few years ago.
| Aug 24, 2012
Skanska hires Miller as procurement manager
Miller brings more than 25 years of construction procurement expertise.
| Aug 24, 2012
KLMK Group forms strategic alliance with Taylor Construction Management
KLMK's expertise in the capital delivery process and TCM's global platform combine to provide an integrated solution with an unparalleled impact for health care related industries.
| Aug 24, 2012
Study predicts how health economic, delivery and buildings play a role in the next decade
Study also finds accountable care organizations, pay-for-performance and aging population will have greatest impact over next five years.
| Aug 24, 2012
ABI downturn moderates as negative conditions continue
South the only region reporting increase in design activity.
| Aug 24, 2012
Texas ACEC to host Morrissey Goodale's "One-Day MBA" seminar
This one-day blitz of business management training will include topics such as building a branding machine, the market for mergers & acquisitions, drama-less ownership transition, building high-performance teams, and transformational project management and delivery.
| Aug 21, 2012
Under 40 Leadership Summit slated for October 3-5 in Chicago
Attendees will be given an exclusive technical tour of Wrigley Field, led by Steven J. Jacobsen, CDP, who has been retained by the Chicago Cubs to create the business plan and high-level concepts to evaluate the feasibility of various renovation options for this iconic sports venue; and Carl Rice, Cubs’ Vice President, Baseball Operations.
